{"id":564946,"date":"2026-03-06T09:55:24","date_gmt":"2026-03-06T09:55:24","guid":{"rendered":"https:\/\/www.crypto-news-flash.com\/?p=1289604"},"modified":"2026-03-06T09:55:24","modified_gmt":"2026-03-06T09:55:24","slug":"tron-dao-welcomes-sec-decision-to-drop-case-against-tron-foundation-and-justin-sun","status":"publish","type":"post","link":"https:\/\/e-bitco.in\/index.php\/2026\/03\/06\/tron-dao-welcomes-sec-decision-to-drop-case-against-tron-foundation-and-justin-sun\/","title":{"rendered":"TRON DAO Welcomes SEC Decision to Drop Case Against Tron Foundation and Justin Sun"},"content":{"rendered":"<div class=\"eth-editorial-banner\"> <img decoding=\"async\" class=\"eth-editorial-logo\" src=\"https:\/\/www.crypto-news-flash.com\/wp-content\/uploads\/2025\/11\/cnf2-scaled-1-1-1.png\" alt=\"Crypto News Flash\"> <span class=\"eth-editorial-text\">All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.<\/span> <\/div>\n<ul>\n<li><strong>The TRON DAO has praised the US SEC\u2019s decision to settle a case against Justin Sun, the TRON Foundation and the BitTorrent Foundation.<\/strong><\/li>\n<li><strong>Sun-owned Rainberry, formerly known as BitTorrent Inc., was ordered to pay a $10 million civil penalty to the regulator.<\/strong><\/li>\n<\/ul>\n<hr>\n<p>The US Securities and Exchange Commission has settled its claims against Justin Sun and three related organizations in a decision the TRON DAO has termed \u201cmeaningful progress.\u201d<\/p>\n<p>In a court <a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nysd.596044\/gov.uscourts.nysd.596044.96.1.pdf\" target=\"_blank\" rel=\"noopener\">filing<\/a> at the Southern District of New York on Thursday, the watchdog dropped the charges against Sun, the TRON Foundation and the BitTorrent Foundation. Announcing the dismissal, Sun said that the filing would bring closure to the multi-year court battle, but that he had never stopped building despite the legal woes. He added:<\/p>\n<blockquote>\n<p>I will continue to focus on accelerating innovation in the United States and around the world and look forward to working with the SEC to develop guidance and regulations for crypto going forward.<\/p>\n<\/blockquote>\n<p>The TRON DAO said the dismissal showed that the watchdog is making meaningful progress toward making the US pro-innovation. It reiterated Sun\u2019s message that the network would keep building and strengthening.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">We are pleased to announce that the SEC has moved to dismiss all claims against Tron Foundation.<\/p>\n<p>Today\u2019s SEC is making meaningful progress toward a pro-innovation environment in the United States.<\/p>\n<p>TRON DAO will continue building and strengthening the TRON network to expand\u2026<\/p>\n<p>\u2014 TRON DAO (@trondao) <a href=\"https:\/\/twitter.com\/trondao\/status\/2029699803614167413?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">March 5, 2026<\/a><\/p>\n<\/blockquote>\n<p>Announcing the dismissal, BitTorrent <a href=\"https:\/\/x.com\/BitTorrent\/status\/2029772407775580599\">said<\/a> it was pleased to resolve the matter and move forward.<\/p>\n<p>\u201cA new era of support for innovation is just beginning, and today\u2019s resolution is an encouraging step for the future of innovation in the United States,\u201d it added.<\/p>\n<h3>Critics Question TRON\u2019s Link to World Liberty<\/h3>\n<p>In the filing, the SEC says it had reached a settlement with the defendants and was seeking to \u201cachieve a global resolution.\u201d While all the charges against Sun and the two foundations were dropped, the SEC demanded $10 million in a civil penalty from Rainberry, which was previously known as BitTorrent Inc.<\/p>\n<p>The lawsuit was filed in 2023 under Chairman Gary Gensler. The SEC alleged that Sun and his three related entities engaged in securities violations by selling unregistered securities in <a href=\"https:\/\/www.crypto-news-flash.com\/what-is-tron-trx-beginner-guide-roadmap\/\">TRX<\/a> and BTT tokens. Sun also faced charges of wash trading, with the agency claiming he engaged in deceptive practices to prop up the price of the two tokens.<\/p>\n<p>Additionally, he paid eight celebrities to push the tokens without revealing they were being compensated. These included Jake Paul, Lindsay Lohan, Akon, Soulja Boy and Ne-Yo. Six of the celebrities paid $400,000 in penalties to the SEC in a separate settlement.<\/p>\n<p>Sun, the two foundations and Rainberry agreed to the settlement terms without admitting guilt. Rainberry also committed to never engage in deceptive trading practices.<\/p>\n<p>While the TRON DAO celebrated the dismissal, others questioned the move. Amanda Fischer, who was the agency\u2019s chief of staff under Gensler, called the penalty \u201ca slap on the wrist\u201d for an operation that made tens of millions of dollars.<\/p>\n<p>Others have also linked the dismissal to Sun\u2019s tie-ups with President Trump and his family\u2019s crypto venture, <a href=\"https:\/\/www.crypto-news-flash.com\/world-liberty-financial-wlf-explained-2025-compliance-first-defi-with-global-ambitions\/\">World Liberty Financial<\/a>. Sun was among the earliest to back the project and has partnered extensively with it to expand its market. He is reported to have invested $75 million of his own money in WLFI.<\/p>\n<p>Sun\u2019s links to World Liberty have been publicly showcased over the past year. At a crypto conference in Dubai last year, Zach Witkoff, one of the co-founders of the project, <a href=\"https:\/\/www.tabletmag.com\/the-scroll\/articles\/scroll-feb-2-witkoff-trump-family-affair\" target=\"_blank\" rel=\"noopener\">stated<\/a>,&nbsp;\u201cI just got to thank you for the support, Justin. TRON is just an incredible technology, and we\u2019re lucky to be partners with you.\u201d<\/p>\n<p> <a href=\"https:\/\/www.crypto-news-flash.com\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders. The TRON DAO has praised the US SEC\u2019s decision to settle a case against Justin Sun, the TRON Foundation and the BitTorrent Foundation. Sun-owned Rainberry, formerly known as BitTorrent Inc., was ordered to pay a $10 million civil penalty to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":564947,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[1100,25,99,5373,100],"class_list":{"0":"post-564946","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-other","8":"tag-justin-sun","9":"tag-news","10":"tag-tron","11":"tag-tron-dao","12":"tag-trx"},"_links":{"self":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/564946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/comments?post=564946"}],"version-history":[{"count":0,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/posts\/564946\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media\/564947"}],"wp:attachment":[{"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/media?parent=564946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/categories?post=564946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/e-bitco.in\/index.php\/wp-json\/wp\/v2\/tags?post=564946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}